Wells Fargo beats analysts' Q1 estimates, but posts decline in revenues
WELLS FARGO
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Wells Fargo posted better-than-expected growth on both its top and bottom line for the first quarter, but revenues still fell versus the year ago period, despite a jump in its so-called market sensitive income, as non-interest income declined.
Over the first three months of 2019, the lender's net profits increased by 15.6% versus the year earlier period to reach $5.9bn, for adjusted earnings per share of $1.20.
The analyst consensus as per FACTSET was for EPS of $1.11.
However, the lender's revenues fell by 1.4% to $21.6bn as non-interest income declined by 4.1% to $9.298bn, although even then it surpassed by a wide margin the $20.9bn that analysts had penciled-in.
Net interest income edged up by 0.8% versus the comparable period of 2018 to $12.3bn, while so-called market-sensitive revenues bounded ahead to $1.3bn, against $0.4bn the last time around.
Driving gains in the latter was a $797m increase in deferred compensation plan investment results.
Net charge-offs declined from $741m one year ago to $695m.
As of 1333 BST, shares of Wells Fargo were changing hands at $48.11 in pre-market trading, which was 0.78% higher than a year ago.